Because of fixed interest rates, there is no risk involved with holding government bonds

If the CPI basket of goods cost $200 in the reference base period and $450 in a later year, the CPI in the later year equals

A) 225. B) 250. C) 300. D) 450.

If there is an increase in the price level in the classical model,

a. the equilibrium level of output will remain unchanged. b. real wages remain constant. c. money wages will rise proportionally. d. all of the above.